Saudi Arabia Expands Int’l Partnerships with Three Countries to Develop Metals Industry

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
TT

Saudi Arabia Expands Int’l Partnerships with Three Countries to Develop Metals Industry

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)

Saudi Arabia has expanded its network of international partnerships after the Ministry of Industry and Mineral Resources signed three memorandums of understanding on cooperation in mineral resources with Chile, Canada, and Brazil, aimed at strengthening frameworks for technical and investment cooperation in the mining and metals industry in a way that serves shared interests.

The move coincides with the launch on Wednesday of the fifth edition of the Future Minerals Forum in Riyadh, held under the patronage of King Salman bin Abdulaziz, and drawing unprecedented international participation of more than 20,000 attendees and around 400 speakers, including ministers, experts, executives from major global mining companies, international organizations, academic institutions, and financial bodies.

In his opening remarks, Minister of Industry and Mineral Resources Bandar Alkhorayef stressed that the forum would continue to play a pivotal role, noting its evolution from a platform for dialogue into a global decision-making hub that influences policy and mobilizes investment.

Alkhorayef said the fifth edition marks a qualitative milestone in the forum’s journey as a central platform for shaping decisions and building partnerships across the entire mineral value chain, adding that the major transformations the world is witnessing, including artificial intelligence applications and the energy transition, cannot be achieved without securing minerals and their associated supply chains in a responsible and sustainable manner.

Exploration licenses

On the domestic front, he stated that the kingdom continues to play its role in enhancing the resilience of global mineral supplies, in line with Vision 2030, through a thriving and sustainable mining sector that is attractive to investment, supports economic diversification, and creates jobs.

Alkhorayef said Saudi Arabia has allocated more than 33,000 square kilometers to local and international companies through competitive rounds for exploration and mining licenses, noting that the ninth round alone saw the award of 172 mining sites to 24 companies, the largest licensing round to date.

He also said geophysical and geochemical surveying of the Arabian Shield has been completed at a rate of 100 percent, and that spending on exploration has grown by more than fivefold since 2020, rising from one million riyals to 1.052 billion riyals, about $280 million, in 2024.

He reaffirmed the kingdom’s commitment to accelerating investment in its estimated mineral potential of around 9.4 trillion riyals, about $2.5 trillion, by offering competitive exploration opportunities in 2026 and 2027.

As part of efforts to enable investment and reduce risk, Alkhorayef announced the launch of a mining infrastructure enablement initiative in partnership with the Saudi Authority for Industrial Cities and Technology Zones, commonly referred to as Modon.

Its first project will involve building a 75-kilometer treated water pipeline to support development in the Jabal Sayid area and accelerate the implementation of mining projects.

The launch of the forum’s fifth edition also coincides with the announcement of two new private funds designed to support opportunities across the mineral value chain in the kingdom, reflecting investor confidence and the sector's increasing maturity.

The initiatives include strategic partnerships to support mining projects and midstream value chain projects, as well as the launch of a new investment fund to back mineral and industrial opportunities.

On the research front, national bodies involved in research and development are signing strategic agreements with international partners to enhance innovation in exploration, processing, and digitalization, thereby supporting higher efficiency in the mining sector and facilitating the faster adoption of advanced solutions.

Capital flows

In a panel discussion, Finance Minister Mohammed al-Jadaan said the mining sector plays a pivotal role in attracting capital, underscoring the need for clear, stable, and well-defined policies to support long-term investment.

He noted that global markets are experiencing rising uncertainty due to economic changes and geopolitical developments.

Al-Jadaan stated that many countries view minerals as strategic assets due to the significant opportunities they offer for growth and development. In the current climate of global volatility, he added, the sector requires greater reliability and predictability, as well as disciplined investment decisions when selecting countries and minerals most suitable for investment.

He said geopolitical tensions have become the main source of uncertainty hanging over the global economy, with their impact clearly visible in sectors that require long-term investment, foremost among them mining, which needs high levels of stability and predictability given its long operating cycles.

Despite the challenges, he said the environment offers opportunities if handled correctly by states or investors, noting that many countries now view minerals as a national or, at the very least, economic security issue, opening the door to partnerships with host countries or even third parties.

Al-Jadaan stressed the importance of discipline in seizing these opportunities through careful selection of investment destinations and target minerals, particularly in light of current geopolitical and economic challenges.

He said the mining sector cannot focus solely on the near term, but needs a forward-looking vision extending to 2040.

He described current global conditions as only the beginning of what could be expected in 2026, stressing that credibility, predictability, and certainty are the main drivers of major investment decisions, and that their absence at present poses a real challenge to capital inflows.

He urged investors to exercise discipline by carefully choosing target countries and strategic minerals, noting that partnerships with third parties could be an effective way to overcome the economic and political volatility the world is currently experiencing.

Mining investment

In another panel, Investment Minister Khalid al-Falih stated that estimates by global institutions, including McKinsey and IHS, indicate that the global mining sector will require approximately $5 trillion in investment over the next decade, encompassing the entire value chain, including supporting infrastructure.

He said a gap remains between the amount of capital available globally and the investment required to expand mining activity, noting that while the investment community has ample liquidity, the challenge lies in directing that funding toward a sector that is essential rather than optional.

Al-Falih said the sector’s importance stems from geopolitical considerations that require diversification and resilience in supply chains, in addition to the demands of the energy transition and changes driven by artificial intelligence and digital technologies, all of which depend on rare and critical minerals that can only be supplied by a mining sector capable of exploration, development, and production.

He said the sector includes leading global companies with the expertise and capabilities required, alongside the availability of promising geological areas that remain underexplored, such as the Arabian Shield in Saudi Arabia and other regions in what he described as the super region stretching from Central Asia to West Africa.

Al-Falih also touched on the financial market performance of Maaden and its positive results, which have been reflected in its market valuation, stressing the need to inject the investments required to support the sector’s growth.

He said the biggest challenge lies in perceived risks, ranging from exploration risk to environmental risk, as well as social, and governance obligations. He noted that Saudi Arabia has worked to address the risk-return gap through an investment strategy, an investment law, and an active government role in reducing risk.

He added that mining revenues and fees are redirected to a dedicated fund to address gaps not covered by the private sector, and said transparent data is a key factor in reducing risk, particularly after the completion of a comprehensive geological survey and the availability of its data to investors.

He concluded by saying that Saudi Arabia has developed railways, ports, and industrial cities to ease the burden on companies, as part of an integrated strategy that addresses regulation, policy, and financing, and helps set the kingdom’s experience apart from global trends.

New discoveries

Maaden Chief Executive Robert Wilt said Saudi Arabia has a strong foundation as it moves into diversification models under Vision 2030 and seeks to leverage all of the country’s resources.

He said that on the back of this foundation, the company plans to invest $110 billion over the next decade, doubling its aluminum and phosphate businesses and tripling gold exploration.

Wilt said the scale of infrastructure required demands strong government enablers, and that by working with multiple ministries to implement mining policies in Saudi Arabia, significant capital is available for construction and development.

He said the company expects to announce a partnership this week with a global firm to attract thousands of developers and engineers from leading international companies.

He also referred to the government’s announcement last year of the discovery of 7.8 million ounces of gold in the kingdom, while disclosing global exploration programs.

“We can achieve 30 percent in our portfolio by growing partnerships that result from enhancing mineral exploration capabilities in the kingdom,” he said.

Panel discussions

Other sessions highlighted key themes on strengthening the role of mining in building the national economy. The chairman of Chile’s Codelco stated that the country’s economy is built on copper, with one of the world’s largest reserves. Copper forms a major part of its exports, cementing its position as one of the world’s leading copper producers.

David Copley, special assistant to the US president on the National Security Council, said minerals have become a priority for the national economy and are the building blocks for everything countries need to reindustrialize.

The forum’s program includes a wide range of events, including the Mining Investment Journey, the Finance Gateway in partnership with the Bank of Montreal, MinGen workshops aimed at youth and women in mining, the MinValley innovation and technology platform, and a knowledge exchange platform that brings together leading experts to share the latest developments in geology, technology, sustainability and skills development.

The forum will conclude with the announcement of winning teams and the honoring of partners in a closing ceremony highlighting the outcomes of the Future Minerals Pioneers competition, celebrating innovators, boosting the competitiveness of the mining and metals sector, supporting Vision 2030 targets, and reinforcing Saudi Arabia’s position as a global innovation hub in this vital sector.

As part of efforts to promote innovation, the forum will also see the launch of the Start-Up Derby, organized by the National Industrial Development and Logistics Program, as an event held at the Minerals Café in the outdoor exhibition area on January 14 and 15.

The initiative serves as an open platform to showcase emerging technologies and innovative business models in mining, critical minerals, and processing, with direct links between innovators and investors.

 



Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
TT

Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.


Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
TT

Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP

Tech firms tumbled Thursday as investors contemplated the outlook for the AI boom after Democrats swept the US midterms, partly on the back of growing anger over the rapid building of data centers across the country.

However, broader markets mostly rallied and oil plunged after Donald Trump's Republicans were dealt a historic defeat that was blamed on high prices, tariffs and the Iran war.

The result stoked hopes he will look to wind down the Middle East conflict, which would help temper inflation and even soften his stance on trade.

But AI-linked firms came under the cosh amid fears for planned data center construction projects as well as renewed scrutiny from newly installed Democrats on Capitol Hill.

The sector had already been in the crosshairs of investors owing to questions about the vast sums pumped into new facilities, R&D and chip development, and when any companies would see a profit.

Charu Chanana at Saxo Markets said the vote was accelerating a reassessment of AI that was already under way.

"A Democratic Congress introduces another layer of uncertainty: regulatory scrutiny," she wrote, adding that the three main risks were more oversight, data center restrictions and capital spending uncertainty.

"The congressional scrutiny could accelerate demands for AI safety standards, independent model evaluations and greater accountability for data center developers," she added.

However, she also said: "This is not the same as an outright anti-AI policy agenda. AI is strategically important for US competitiveness, particularly against China, and there remains considerable bipartisan interest in maintaining American leadership."

Chip firms were hammered in Asia, with South Korea's SK hynix off more than seven percent and Samsung 5.5 percent down.

Tokyo-listed Kioxia dived more than 13 percent and Advantest tanked 14.7 percent, while Tokyo Electron lost more than nine percent and SoftBank 6.8 percent.

US Nasdaq futures fell more than one percent.

Broader markets performed better as investors rotated into other sectors including finance, auto, mining and manufacturing names.

Seoul, the poster child of the AI-led surge in the first half of the year, shed more than five percent, while Taipei lost more than three percent. Tokyo gave up 1.8 percent.

But there were healthy gains in Hong Kong, helped by hopes for an easing of trade tensions between the US and China, with tech titans including Alibaba, JD.com and Tencent leading the way amid a shift into beaten-down regional stocks.

Shanghai, Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila also advanced.

Oil continued to fall after diving more than eight percent Wednesday on the US result amid optimism Trump will seek a deal to end the Iran war, which has been a key driver of the inflation spike that has hammered US consumers.

Hopes were given a boost when Vice President JD Vance said in a social media post that the Republican defeat was due to the unpopularity of the eight-month-old conflict.

The drop in crude prices -- both main contracts are now below $100 for the first time since the start of October -- has also tempered inflation worries and, in turn, Treasury yields, which dipped again Thursday.

The lower cost of borrowing has also been helped by the prospect that gridlock on Capitol Hill would lead to less spending.

That also weighed on the dollar, which held losses against its peers in Asian trade.


Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
TT

Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP

On a windy hillside about an hour's drive northwest of Istanbul, the Catalca power plant was one of Türkiye's first large-scale wind farms and has been feeding electricity into the grid for 18 years.

With an installed capacity of 93 megawatts, it generates 287 million kilowatt-hours of electricity a year, enough for around 115,000 households, said AFP.

"By replacing electricity that would otherwise come from fossil fuel-fired power plants, this output avoids 185,936 tons of carbon emissions each year," operator Sanko Enerji says.

Nearly two decades on, Catalca is one of nearly 300 wind farms, its giant turbines a symbol of the rapidly expanding capacity for renewable energy in Türkiye which is hosting the COP31 UN climate summit that opens in Antalya on Monday.

Last year, 43 percent of Türkiye's electricity came from clean energy sources, of which wind and solar accounted for 22 percent, according to energy think tank Ember.

With electrification emerging as one of the central themes of COP31, Türkiye has been pushing hard for it to be an implementation-focused summit that turns existing climate pledges into action.

Energy Minister Alparslan Bayraktar has outlined plans to triple Türkiye's installed solar and wind capacity from around 40 gigawatts to 120 gigawatts by 2035.

But with coal still the leading source of power generation, Türkiye is under pressure to pair its impressive renewables growth with a definitive shift away from fossil fuels.

Not only is it still building coal-fired power plants, it has yet to set a date to phase out fossil fuels.

- Coal still dominant -

"Türkiye's continued reliance on coal, alongside plans for further expansion, highlights the contradiction at the heart of its current trajectory," Duygu Kutluay of Beyond Fossil Fuels told AFP.

Embracing an electrification agenda alone did not amount to a genuine energy transition because "coal remains the country's largest source of electricity generation", she said.

Coal-fired power plants accounted for 33.5 percent of Türkiye's electricity production in 2025, energy ministry figures show, with Ember saying almost two-thirds of its coal was imported.

Plans to expand coal capacity "risk locking in further fossil-fuel dependence", she warned.

"As Türkiye increases renewable capacity, it must ensure clean electricity replaces fossil-fuel generation rather than simply meeting additional demand," Kutluay said.

The challenge is not only expanding renewables but establishing "a clear pathway to phase out coal".

Asked about Türkiye's continuing reliance on coal, Bayraktar told AFP in February that Ankara prioritized securing affordable energy supplies and reducing dependence on imports.

"Coal can initially be replaced with gas, but in the medium and long term it can be substituted with nuclear," he said.

Ibrahim Erden, president of the Turkish Wind Energy Association, said every country's transition was different with "no single path that suits everyone".

- Need for investment -

Emin Emrah Danis, chief executive of MOBEN consultancy, said Türkiye's energy policy was shaped by rising electricity demand and the need for "baseload" generation to deliver constant power around the clock.

"This is why Türkiye has invested heavily in gas- and coal-fired power plants over the past 30 years," he told AFP.

"For coal's share of power generation to fall to meaningful levels, Türkiye needs substantial investment in electricity storage and nuclear power," he said, referring to battery storage for renewable power.

Türkiye is currently putting the finishing touches on the first reactor of its Akkuyu nuclear power plant, which should be online by the start of 2027, Bayraktar told an energy summit last week.

But Türkiye's nuclear expansion, with two more plants in the pipeline, was unlikely to add enough baseload capacity to replace coal-fired electricity generation before around 2040, Danis said.

And coal would likely remain part of the energy mix for decades, with the need for baseload power and dependence on imports making a full phase-out infeasible before "the mid-2050s".

Türkiye relies heavily on imports of oil, natural gas and coal from countries like Russia, Iran and Azerbaijan.

Erden said infrastructure updates were essential to give greater place to renewables.

"We cannot simply shut down coal-fired power plants today and rely solely on wind and solar energy ... The technological and physical infrastructure is not yet capable of supporting that."

Beyond the climate argument, geopolitical tensions have also strengthened the case for domestic renewables.

"Renewables ... are not only one of the most effective tools for tackling climate change, but also an important means of strengthening energy security and reducing dependence on foreign supplies," he said.